MBA samples a major chunk of the mortgage market (about 75%), conducting research on across the country from all manner of mortgage markets, including commercial lenders, mortgage banks, and thrifts. They’ve been surveying the market since 1990, it’s safe to say there is some stock to be held in their projections.
What exactly are they saying?
While great news for home sellers, lenders are seeing a decrease in refinancing applications. The Refinance Index holds an overall decrease of 2% from the previous week. The net market share of refinances altogether has fallen by about 50.1%. That’s .7% lower than the week before it.
Joel Kan, MBA’s Associate Vice President for Industry Surveys and Forecasting, stated that purchases have risen on a year to year basis.
Last year, purchases were 5% lower in September and October. Seasonally, the purchase index has actually increased by a rate of 1%.
“Rates moved higher over the course of last week, at least partially due to signs of stronger economic growth,” said Joel Kan upon release of the survey. You can check it out by subscribing to them here.
These figures might look like just mild fluctuations, but mortgage rates have moved up by about .01% from last week. Considering the national tragedies the country has recently endured, lowering market interest is expected.
This survey shows that there’s a positive outlook in the future of purchasing and real estate, especially when considering some of the strongest places affected like Texas and Florida.
So, what does this mean for people looking or interested in mortgage rates? With steadily increasing purchases, projected market and mortgage price points are estimated to increase. For refinancers, now might actually be the best time to renegotiate your mortgage.
These are a lot of figures. Confused? Contact us and we’ll help you out in understanding what it takes to refinance or mortgage. If you don’t want to wait, get in touch with us on Facebook and Twitter!